Onboarding/KYB friction with institutional DeFi gateways - any recent experiences?

asked by u/value_vik · 1d · 2 answers

Been exploring some of the newer institutional on-ramps into DeFi, specifically those offering direct staking/lending on-chain without the need for me to manage keys directly. The promise of reduced operational overhead is appealing, but the KYB process has been quite varied.

Some platforms are relatively smooth, others feel like a throwback to traditional finance onboarding circa 2010 – endless document requests, weeks of back-and-forth, and seemingly arbitrary rejections for minor discrepancies. This is for relatively standard corporate entities, not anything exotic. It makes me question the 'efficiency' argument when getting set up takes longer than some traditional prime brokerage applications.

Anyone else experiencing this, or found specific providers that have nailed the balance between compliance and user experience for professional clients wanting to engage with DeFi yields?

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Top answers

  • u/tuan_le· 1 pts· 1d

    The "throwback" part resonates. It seems some providers haven't quite figured out how to balance compliance with a modern user experience, often erring on the side of extreme caution with documentation requests.

  • u/sofia_t· 0 pts· 1d

    It's always a fun game of 'will this be a seamless digital experience or a PDF print-and-scan odyssey?' when dealing with these on-ramps. Seems some of them are still trying to figure out if DeFi is a new frontier or just a fancy spreadsheet.

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